Typically, when a consumer purchases prepaid cards such as gift cards with a credit card, the existing credit card based payment networks (existing payment networks) takes a significant percentage of the prepaid card value. For example, a consumer may purchase a prepaid card with their credit card, and the credit card processor may take several dollars, leaving behind the rest for the merchant and any intermediary. Such costs typically arise due to risk that is born by the existing payment networks, as it is unknown whether the purchaser has sufficient funds to cover the prepaid card. However, such costs reduce the profitability of such prepaid cards.
A need exists for improved systems and methods for prepaid card purchase, payment and redemption systems. A further need exists for systems and methods for utilizing mobile payments.